April - Harness Tracks of America, Inc.

HARNESS TRACKS OF AMERICA
Executive Newsletter
A daily fax and e-mail report on racing and gaming developments in North America and beyond
Stanley F. Bergstein, Editor April 26, 2002
NON-SURPRISE OF THE DAY IMPORTANT BILL INTRODUCED
Those who like to plunge on absolute 1-to-10 sure A major stumbling block to international merged
things had another winner this week, when Magna
Entertainment announced that it plans to re-
introduced on April 17 is passed. Introduced by
pools and simulcasting could be removed if a bill
negotiate with the Thoroughbred Owners of California
after that organization gave Hollywood Park 4474) would stipulate that residents of foreign
Congressman Jim McCrery (R-LA), the bill (H.R.
and TVG a better deal on share of account wagering
revenues than it had given Santa Anita in Janu-
merged with U.S. tracks and not be subject to the
countries could bet on U.S. races through pools
ary. Thoroughbred Times reported that Magna current U.S. 30% alien withholding tax after Sept.
VP and general counsel Ed Hannah said the company
“would be back at the negotiating table” when although some countries have treaties with the
30, 2002. The American Horse Council notes that
its current contract expires. The discrepancies that U.S. that suggest that gambling winnings are not
raised Magna’s hackles were horsemen’s share subject to this 30% withholding requirement, U.S.
of 5.3% on bets by Californians on California races track shave been concerned that they might be
through TVG accounts as opposed to 5.88% for liable for this 30% withholding if they did not take
Magna’s XpressBet; 4.5% on Californian’s bets it out of payments to foreigners because the treaties
are unclear or could be changed. This con-
on out-of-state races as opposed to 5.19% for
Magna’s service; and 1.8% on bets through TVG cern over liability has effectively prevented the
by out-of-state residents as opposed to between racing industry from merged wagering pools internationally,
except for a few countries. Several ex-
2.9% and 5.64%, for a blended rate of between
4.5% and 5% through Magna. Both the Magna ceptions to the 30% alien withholding requirement
XpressBet and Hollywood TVG agreements were already are on the books, and the McCreary bill
hammered out in the heat of last minute deadlines would add exemption from foreign betting to them.
before the two services began operations at Santa H.R. 4474 has been referred to the House Ways
Anita and Hollywood Park, respectively. The California
racing board’s pari-mutuel committee will
and Means Committee.
discuss the contracts and market access fees at a
meeting June 5.
CAL SETS HOUSING RULES
In another California development, the state’s racing
board has established minimum standards for
employee housing and stable area sanitation facilities.
The standards, which are temporary until
the board develops and approves permanent rules,
require “habitable” rooms, with adequate light and
ventilation, and separate toilet, bath and shower
rooms for men and women. They also cover
health and safety measures including pest
control, garbage collection, and smoke
detectors.
APRIL REPORT NOW ONLINE
HTA’s April report to directors, containing the text
of 13 presentations from the Harness Racing Congress
in PDF format in one easy-to-print document,
is posted online today. It can be accessed at
www.harnesstracks.com/docdatabse/htamembers/
456.pdf. Individual presentations from the Congress
remain available on the HTA Web site at
www.harnesstracks.com.
The new HTA World Racing Directory goes to the
printer next week. If your track has made any
recent changes that may not have been transmitted
to us, please do so now if you would like
them included in the new book.